FOOD TRUCKS IN SOUTH AUSTRALIA -...

Governmentof South Australia

FOOD TRUCKS IN SOUTH AUSTRALIAPOSITION PAPER

2 | Food trucks in South Australia - Position paper

Contents

Premier’s foreword 5

Outline 6

What have we heard? 7

What we propose 10

1. Simpler regulation 12

2. More places to trade 16

3. A better approach to food safety inspections andfoodbusinessnotifications 20

4. Other measures for food trucks 24

Implementation summary 27

Food trucks in South Australia - Position paper | 3

Premier’s forewordThe introduction of food trucks to the streets of Adelaide has beenaterrificsuccess.

By providing excellent food and service, they expand choice, bring energy and colour to the city, and create jobs and commercial opportunities.

In many ways, food trucks represent exactly what South Australia needsinthecurrenteconomicclimate–flair,entrepreneurshipand boldness.

TheyalsofitinperfectlywithtwoofourguidingEconomic Priorities – to make Adelaide the heart of a vibrant State and to make South Australia the best place to do business.

The State Government wants to see more food trucks in the city and suburbs.

We want to have them operating on a simpler, more strategic and better organised basis – yet without unfairly compromising the viability of “bricks-and-mortar” eateries.

This Position Paper – which is the result of months of grassroots consultation – is a comprehensive plan to practically help existing food truck operators, to foster new players, to reduce ‘red tape’ and to provide greater certainty.

The paper surveys progress so far, discusses possible innovations and details the following six State Government reforms:

• simplifying regulation through a consistent permit system;

• providing more places to trade, on both public and private land;

• allowing trucks to operate at Government-owned transport hubs;

• introducing a better approach to food-safety inspections, including through a new inspection ‘passport’;

• making available a ‘tester truck’ so that potential new operators can try the concept; and

• using food trucks to promote Adelaide and the State to interstate and overseas people.

I look forward to carrying out these measures, in the coming 18 months, through legislative change and direct State Government action.

The food truck sector is full of promise.

Iamconfidentthatthecommunity-sourcedideasandinnovationsinthisPosition Paper will encourage it to thrive, and become an even more popular and attractive element of Adelaide street life.

Jay Weatherill Premier of South Australia


OutlineIn November 2015, the State Government released a discussion paper seeking your ideas to better support food truck ventures and ensure such entrepreneurial activity is not held back by unnecessarily complex and changing regulation.

The paper noted that in recent years there has been a surge of interest in food trucks – both from customers keen to sample innovative food in a relaxed environment and from traders seekingnewbusinessopportunitiesinaflexible, low-cost setting.

Thepaperbrieflyexploredtheregulationsthatmobilefoodvendors must currently comply with and proposed several areas for simplifying this red tape. The ideas raised included a more consistent permit system, offering rebates on vehicle registrations, offering greater freedom for food trucks to operate on Government land, and provision for a trial truck, amongst others.

Following feedback, the Government believes we need to support these enterprises where we can and ensure they are not unfairly disadvantaged in any way.

This Position Paper sets out six achievable proposals that we will deliver in partnership with key stakeholders to help these growing South Australian businesses thrive. These proposals are intended to provide greater choice and accessibility for South Australians and encourage city vibrancy and activity.

This paper is also about encouraging new entrepreneurs, giving themtheconfidencethattheirendeavourswillbesupported,and sending the message that South Australia is a great place to start a new business in the food service industry and beyond.

The Government’s goal is to continue to remove barriers that may inhibit the entrepreneurship that food trucks represent and to better support start-up businesses that adopt innovative modes of trading like offering premium food on a mobile basis.

If South Australia gets this right, we will bring increased vibrancy, activation, and dual opportunities for innovation and entrepreneurship to both the centre of Adelaide and local communities.

Food trucks are an example of a small but critical element that, if done right, can support a more progressive, innovative and interesting city, and continue to demonstrate that South Australia is both a great place to live and start a business.


What have we heard?

Discussion paperResponses to the discussion paper raised ideas including a consistent permit system under the Local Government Act 1999, a single centralised permit system managed by Government, reform to health inspections, a rebate on vehicle registration, and greater license to operate on Government land.

Overall, support for food trucks was strong. Respondents pointedoutbenefitsfromcompetitionanddiversityofcuisinesoffered by food trucks. They saw food trucks as having a key role in providing both vibrancy, interest and choice for the public and opportunities for entrepreneurs across the city. Many advocated no limits on food trucks, while a small number questioned the levels of food hygiene and lack of disability access associated with food trucks.

A brief summary of responses is set out below, with further feedbackonspecificproposalsfoundthroughoutthe position paper.

Responses from individualsThere was strong overall support for food trucks from individuals. Respondents expressed the desire for “cheap and excellent” food trucks and observed that:

”Food trucks have put life and colour back into the city and to the suburbs they visit … we need to support these start-up businesses.”

Another respondent stated that food trucks add:

”Vibrancy, colour, and [are] part of the recent elevation of the city’s image.”

From the important perspective of entrepreneurship, another respondent stated that:

“Food trucks are an inspiring proposition to a person interested in a start-up business … a perfect vehicle for individuals to take a risk on a small scale and learn important business rules and lessons.”

The same respondent referred to food trucks as being disruptive to the food industry, as other industries (such as the taxi industry) are currently experiencing disruption by new technology and approaches. While recognising that disruption can be uncomfortable for existing players, respondents noted:

“We need to take a long term view in order to transition Adelaide into the vibrant, progressive and innovative city we need it to be.”

While we heard: “As far as I am concerned, the more the merrier!” we also heard: “I think you need to consider restaurant & cafe owners who have to pay huge overheads and their viability.” This is an important point. These proposals are not intended to compromise the viability of existing businesses. Instead, the aim is to remove barriers to trade, encourage innovation and vitality in local communities, and offer opportunities for locals and visitors alike to enjoy South Australia’s vibrancy and premium food offerings.

Several respondents noted the mobility and versatility of food trucks. One respondent made the important observation that: “food trucks are small and mobile, can move and cater to the shifting needs of pedestrians.” This highlights the opportunity to support and encourage food trucks to venture beyond Adelaide CBD to a variety of locations across the city.

This will enable people all across Adelaide to experience the increased interest and activity that food trucks bring, particularly where seasonal demand may see an increase in visitors, following the observation that: “when there’s an event on or a seasonal increase in visitors … the food trucks are an excellent resource to offer choice”.

YourSAy consultation 20 November until 15 January 2016

Discussion Paper released 20 November 2015

49 comments from 43 contributors

Six written submissions


Responses from organisations We received responses from representative groups and councils, including the Adelaide City Council, the City of Onkaparinga, one other council, the Local Government Association, Restaurant &CateringAustraliaandtheOfficeoftheTechnicalRegulator.

Overall, we heard positive messages. The Adelaide City Council (ACC) noted its successful management of a Mobile Food Vending (MFV), or food truck, program since an initial pilot in 2011, and that:

“This program has been instrumental in providing entrepreneurs with the opportunity to trial and test an idea and business model.”

ACC also stated their position on the proposal to introduce a consistent permit system, noting that:

“..thisapproachmayhavesomebenefitsfor[foodtrucks] in respect to the degree of certainty with their operations across council boundaries [but] it will be critical that the standard conditions do not remove all flexibilityfromCouncil’sdecisionmakingprocesses,and thereby creating additional burdens for permit holders and an adverse impact on the local business community.”

The Government acknowledges this position. Rather than removingallflexibilityfromcouncils,theproposedapproachaims to ensure that conditions on food trucks operating across Adelaide are consistent, applied logically and do not unduly inhibit their business.

Lastly, ACC was keen to express that it had undertaken research intotheeconomicandsocialbenefitsofthefoodtrucksandsaid it was able to offer evidence and learning. The Government thanks ACC for providing this analysis with its submission.

Submissions were also received from two other councils. The City of Onkaparinga is highly supportive of food trucks. They note the important role of food trucks in supporting entrepreneurship and innovation. They stated that mobile food vendors contribute to the vibrancy of Southern Adelaide, bring people into public spaces, stimulate market growth and visitation, and provide an opportunity for ideas to be tested in a safe, low-cost environment.


Thecouncilalsosaidthattheyreceivedasignificantincreaseinenquiries after putting out a media release encouraging food truck vendors to contact them. Notably, they said that:

“[given] the restrictive conditions placed on food truck operators by a number of other metropolitan councils, it is considered that it is necessary to create a consistent permit system that supports the over-arching need to increase and support vibrancy, activation, and opportunities for innovation and entrepreneurship in the current economic climate.”

The other council asked that their submission not be published (as the deadline for comments did not align with the schedule of council meetings), but it supported:

“A simple and easy to navigate permit system across councils with the possibility of some local variation.”

The Local Government Association (LGA) stated it was: “committed to reducing unnecessary red tape for council and communities.”Itidentifiedduplicationincurrentpermittingsystems, including:

“The need to apply for a permit in each jurisdiction, having different conditions imposed in each, and having a number of food health and safety inspections across councils.”

The LGA indicated some support for regulating permit conditions that pertained to safety and technical standards. However, they stated that individual councils should have discretion to regulate other permit conditions such as permit costs, operating hours and operating locations. The LGA also noted the opportunity to streamline food inspections for food trucks.

Restaurant & Catering Australia (RC&A) comments supported fostering growth and reducing the regulatory burden associated with starting a food business, and noted that:

“In fostering the growth of food trucks in South Australia, it will be necessary to ensure the regulatory environmentisnotoverlycomplexsoastostifleinnovation and entrepreneurship.”

RC&A also stated that:

“Regulation guiding food truck operators will therefore need to balance the interests of newly-established mobile food trucks with those of existing bricks and mortar operators in key dining precincts.”

This concern is addressed in the actions below.

Comments from the Office of the Technical Regulator (OTR) highlighted the obligations of food truck operators to ensure compliance with gas and electricity legislation (regulatory requirements under other legislation).

Beyond the submissions received, the Government took opportunity to consult more broadly, including with universities and a range of agencies. The Government also held a roundtable with food truck operators to seek their views on how Government could remove barriers to trade and support them to innovate. Operators were keen to see food trucks and the vitality they bring to the State incorporated into the marketing of South Australia locally, interstate and overseas.


What we proposeBased on your feedback and further discussions, the Government intends to take action to support food truck operators.Theproposalsfitintothefollowingfourcategories:

• Simpler regulation

• More places to trade

• A better approach to food safety inspections and food businessnotifications

• Other measures for food trucks

The aim is to create an environment where food trucks can trade across metropolitan Adelaide without unnecessary regulation, making Adelaide a great place to run an innovative food business. This will support a more vibrant Adelaide, encouraging South Australians and visitors alike to explore what Adelaide and beyond has to offer. This initiative will help create an environment which supports innovative new ideas and the people who are enthusiastic enough to pursue them. This is exactly what South Australia needs in the current economic climate.

The actions set out below are practical, achievable measures to support food trucks to operate successfully in this State. They include actions for short term implementation (within six months) and actions for the medium term (six to 18 months).

The proposals put forward in this paper are designed not to disadvantagefixedpremises,orpitfoodtrucksagainst existing traders.

The Government wants all South Australian businesses to thrive, nomatterwhatmodeoftradetheyadopt.Bothfixedpremisesand food trucks contribute to the economic prosperity and vibrancy of the State. The hospitality sector employs thousands of South Australians and supports the State’s economic priorities to provide premium food and wine and make Adelaide a more vibrant and liveable city.

The Government is committed to making South Australia the best place to do business by continually removing barriers to business growth, accelerating approval processes and making sure our regulations support opportunity, rather than create burdens. Some of the key measures the Government is implementing include:

• creating the lowest taxing State in Australia for business, including by:

» abolishing stamp duty on non-real property transferssuchasnon-fixedplantandequipment,intellectual property or statutory licences; and

» making all commercial property transactions stamp duty free from July 2018, and one third lower immediately;

• reforming the workers compensation system; and

• further red tape reduction across a number of areas, including a review of the State’s liquor licensing system, following landmark small-venue reforms.

These initiatives are designed to complement the reforms already underway. They will further support employment growth and prosperity in the food and hospitality sector, and continue to build South Australia’s reputation as a great place to live, work and do business. This will help lift activity, trade, and vibrancy in Adelaide’s streets, parks and community hubs.

We want to see all food businesses thrive, no matter what form of trade they adopt. These proposals are not intended to create unduecompetitionwithfixedpremises.Theaimistohelpnewand existing businesses try a different mode of trading that provides mobile delivery of food options across South Australia.

Some operators, including Burger Theory, Phat Buddha, Low and Slow, Sneaky Pickle and Abbotts & Kinney, have transitioned frommobile-onlybusinessestohavingfixedpremises.Othersoperate in both modes, or operate both a food truck and a cateringbusiness.Someexistingfixedbusinessesareexpandingto operate a new mobile business – for example, the owner of Orana and Street ADL stated he would establish a food truck. These proposals will support entrepreneurs and innovators and help make Adelaide a more vibrant city.


The effect on ‘fixed premises’ – Adelaide City Council’s analysisThe Adelaide City Council (ACC) provided a ‘Mobile Food Vendor (MFV) Economic Analysis,’ prepared for a study of its mobile food vendor program and operating guidelines, with its submission to the discussion paper. The purpose of the analysis was to explore the impact of the city’s MFV program onthesurroundingcompetingfixedbusinesses.Thisinvolvedsurveying 105 businesses.

The analysis found that MFVs provide social, cultural and vibrancy to the city. It also found that, while business conditions in the city are challenging, there was “no noticeable correlation between the decline in trading conditions and the proximity of businesses to MFVs.” MFVs in the ACC were estimated to have a market impact of only 0.15 per cent.

“ Food trucks have put life and colour back into the city and to the suburbs they visit. I cannot see they are much of a threat to established well run, quality food outlets. We need to support these start-up businesses.


1. SIMPLER REGULATION


What is the issue?As one respondent to the discussion paper explained:

“If you had to explain the difference between a food truck and a restaurant to an 85-year old grandmother, you’d probably start out with the most obvious difference: a food truck has wheels. Then why impose restrictions on where a food truck can travel within metropolitan Adelaide?”

Regulation should recognise what makes food trucks different – the ability to move around. This is a key element of the Government’s approach to the regulation of food trucks. Regulation on food trucks should be consistent across council areas, but respect local differences. Without State Government regulation, this will not be the case.

A comparison of food truck policies in six metropolitan councils shows inconsistency in how councils regulate mobile food vendors. Regulation is principally via permit conditions, imposed under the Local Government Act 1999, regarding trading on public roads. For example, some councils only permit ice cream vending,oronlyissueonepermitperfourdefinedforeshorezones. Many local councils do not allow food trucks businesses at all. Restrictions on trading on roads, parks and at events, impactsignificantlyontheviabilityoffoodtrucksandtheirability to meet local demand for premium food options.

A further barrier for mobile food vendors operating across multiple council areas is the need to apply for a permit from each individual council. This means multiple fees and multiple application forms.

To provide a recent example of the uncertainty food trucks operators face, the Government noted that in October 2015 the ACC voted to consider a mobile food vending policy that had been drafted following extensive consultation with food truck operators, businesses and the State Government.

While this policy proposed to change a number of conditions in relation to concerns raised about the operation of food trucks from ‘bricks and mortar’ (fixed) businesses (including increased permit fees and allowable locations for food truck operations); there was broad acceptance of this policy.

However, an amendment to the policy restricting the operation of food trucks during daytime hours was passed with no consultation. This late change—which is expected to have significant impact on the operation of food trucks—highlighted the uncertain regulatory regime that mobile food truck operators are expected to operate within.


Action 1: Introduction of a consistent permit systemWhat is the Government’s position? The Government’s position is that food trucks should operate under consistent regulations State-wide in respect to trading on publicroads.Thiswillprovideconfidenceformobilebusinessesand add vitality to local areas. It recognises the unique characteristic of food trucks; that they are mobile and capable of operating in many local council areas.

Encouraging mobile food vendors to make the most of their mobilitymeanstheycanfillwhatdiscussionpaperrespondentscalled‘thegaps’-seasonalhigh-trafficareaswithnofoodoutlets, such as local sporting events.

A single, centralised State Government-run permit system is not supported, despite being raised in the discussion paper. While this approach may offer some advantages, it would be administratively complex and does not have the support of councils and the LGA.

What is proposed?The Government proposes legislation to support councils to operate in a consistent manner when granting operating permits for mobile food vendors to trade on public roads.

Councils will be able to set certain conditions based on local circumstances. The Government strongly encourages councils to putinplacespecificconditionsthatsupportfoodtruckoperationin their areas, such as allowing food trucks to operate near jetties during summer to attract visitors.

Councils may consider reduced permit fees – in general, at certain times of the year, or for certain events – to attract food trucks to their area.

We will consult on what should be covered by consistent State-wide permit conditions and what should be determined by individual councils. However, we are committed to developing consistent conditions with minimal restrictions.

Food truck trading in local parks – i.e. not on roads – will still be subject to local council event permitting. The Government expects that councils will take a positive attitude to such applications, based on the way Fork on the Road has been welcomed by a number of local councils. The Government is also keen to see smaller-scale events on a regular basis.


ImplementationTo create a more consistent permitting system for mobile food vendors the Government will amend the Local Government Act 1999.

These amendments will create regulations that set out key elements of council permits, and ensure minimal restrictions on permitting, permit fees, opening hours and locations are not unduly restrictive.

To achieve this the Government will introduce regulation making powers under sections 222 and 224 of the Act in 2016. This will result in a more consistent approach across councils to permits for mobile food vendors trading on public roads.

The new regulations will establish the following key requirements in relation to councils:

• no restrictions on the number of permits that can be issued (no minimum or maximum);

• no restrictions on operating hours (outside special events);

• no restrictions on what food can be sold;

• maximum permit fees, with requirement to provide daily, monthly and annual permits at pro rata rates; and

• councils to establish location guidelines, specifying locations where food trucks can trade.

The regulations will set a maximum annual permit fee for food truck permits and require councils to offer equivalent daily and monthly rates calculated on a pro rata basis. Again, this will be a maximum fee. While some councils may choose to adopt a cost recoveryapproach,somemayprefertochargesignificantlylessto encourage food trucks to their areas. Councils may also wish to provide a discount for local businesses establishing a food truck to help established local businesses to grow.

The Government will not establish any requirements for the location guidelines. Recognising and respecting local differences, it will remain up to individual councils to determine where food trucks may trade.

To encourage trade and activity, the Government expects councils will take an innovative and positive approach to these guidelines.Councilswillhaveflexibilitytodeliverclearguidancein response to local needs. For example, a council with foreshore areasmaywishtoprovidespecificguidanceonthebestplacesfor food trucks to trade near busy jetties, while other councils may prefer broader guidance.

The Government is committed to encouraging all South Australian businesses and making South Australia the best place to do business. The Government may consider additional regulation if councils use these guidelines to unduly restrict trade.

The regulations will also require food trucks to comply with all relevant safety and compliance measures. This includes holding public liability insurance and complying with requirements under the Food Act 2001.

The Government aims to have these changes take effect from 1 October 2016.

This approach is considered to strike the right balance between establishing a consistent trading environment for food trucks while allowing councils to adjust for local conditions. However, the Government reserves the right to further amend the regulations to ensure fair trading conditions for food trucks if councils impose unduly restrictive arrangements.


2. MORE PLACES TO TRADE


What is the issue?At present, there is a shortage of suitable hubs for food trucks to trade, particularly in Adelaide’s central business district.

Mobile food vendors do not have a viable, permanent hub in the city where multiple operators can establish a strong presence and generate all-day trade. Food trucks have had success trading at Victoria Square (Tarndanyangga) and Hindmarsh Square. However,tradingcanbedifficultincurrentcircumstances,particularly when a favoured site is unavailable, such as when Victoria Square is used for other events.

Fork on the Road events have the advantage of allowing a greater number of food trucks to gather at a single location, but this is currently restricted to individual events. While this is valuable, it does not establish a set location where food trucks can trade on a regular basis.

Withnopermanenthubforfoodtrucks,itcanbedifficultforfoodtruckstogetafirmholdinthecity.Thereisalsonoreliable location where workers, residents and visitors can predictably access Adelaide’s best food trucks. Night-time trade isparticularlydifficultforfoodtruckoperatorsasnositeoffersadequate lighting, bar and other facilities to encourage trade later into the evening.

Beyond the Adelaide CBD and city squares, we can think and act morecreativelytoworkwithfoodtruckvendorstofindahubfor temporary trade.

Overall, the lack of a food truck hub contributes to uncertainty around food truck trading for vendors.


Action 2: New opportunities for food trucks to trade on private or public landWhat is the Government’s position?Food trucks should have the opportunity to trade at a permanent site in or near the Adelaide CBD. A permanent site will give people certainty that food trucks will be operating there, allowing vendors to establish thriving businesses based on knownfoottraffic.Thismodelhasbeenadoptedsuccessfullyinother Australian cities and internationally, with the US cities of Portland, Seattle and Austin as examples.

While food trucks currently use social media to advertise their location to potential customers, a permanent site will give customers a reliable, consistent place to locate food trucks. This addresses the common concern that customers do not know where food trucks are at any one time.

A permanent site will allow trade to continue into the evening, supporting increased vibrancy and the Government’s vibrant city objectives. Evening trading at a food truck hub will attract families earlier in the evening, and potentially a younger crowd later into the night. This simple action will bring increased activity into Adelaide’s CBD, helping make Adelaide a more vibrant city at night.

What is proposed?The Government will encourage the establishment of a permanent food truck park on public or private land, preferably in or near the Adelaide CBD.

With the right interest from private investors, this will establish a new destination for people to enjoy the vibrancy and variety food trucks have to offer. It will also provide food truck traders withalocationwithreliablefoottraffictohelpestablishtheir businesses. This site would be supported by appropriate infrastructure, such as bar facilities, seating, lighting and bathrooms, supporting food trucks to trade.

Although the site would be permanent, we envisage that food trucks could rotate through this site to maintain interest. This would also support food trucks to trade not only at this site but also other locations across the city. Some operators may also choose to operate one truck at a permanent site and keep one (or more) on the move. While the site would be permanent, the mix of food trucks operating on any given night may change, helping to maintain interest.

ImplementationThe Government will work with private investors to establish a food truck park at a suitable location in or around the Adelaide CBD. The delivery model would be determined in cooperation with private providers. Potential models include ‘Welcome to Thornbury Park’ operating in Melbourne, ‘The Hamlet’ operating in Canberra, or operations such as those found in Austin, Texas.1

The private operator of the food truck park will be responsible for ensuring security, health and safety requirements (other than food safety inspections) are met. They will also ensure the location has necessary facilities to support customers and food truck operators.

The Government will also work to identify new public sites suitable for food trucks. Once more, the intention of this proposalisnottoadvantagefoodtrucksoverfixedpremisesbuttoincreasetheoveralllevelofactivity,tradeandfoottrafficinthe city.

Making better use of the Park Lands

Adelaide is fortunate to have 760 hectares of heritage-listed Park Lands and open city squares, used by nearly nine million people each year.

Food trucks currently operate in the Park Lands and squares on an ad hoc basis and for events. The Government is keen to ensure that food trucks have opportunities to trade more easily in the Park Lands.

The Government will continue to work with the ACC to create these opportunities, making the Park Lands a renowned destination and increasing activity and vibrancy. For example, at the Fork on the Road event in February 2016, food trucks made use of the new north-western Park Lands location with recreation facilities including a playground, skate area and basketball court. While this is an excellent event, the Government is keen to give food trucks the opportunity to trade in this way on a regular basis.

1 www.broadsheet.com.au/melbourne/food-and-drink/directory/bar/welcome-thornbury, www.weekendnotes.com/the-hamlet/


Action 3: Encourage food trucks to operate at transport hubsWhat is the Government’s position? As set out in the discussion paper, the State Government ownssignificantpiecesoflandwhichmightofferfoodtrucksmore places to trade. In particular, the Government thinks that food trucks should be allowed to operate with ease at South Australian transport hubs, notably bus and railway stations.

This will enable food trucks to take advantage of busy peak hourfoottraffic.Itwillalsoallowcustomerstoenjoyfoodtruck service while waiting for their train, tram or bus. As one discussion paper respondent suggested, food trucks would lead to “more engaging and connected community places and make the experience of using public transport a positive one.”

This option supports not only food trucks but other important aims, such as increased engagement and public transport use. As one respondent noted: “our stations could do with a bit of activation and food trucks will certainly add a bit of flair and might even further encourage public transport use.”

What is proposed?The Government will ensure that food trucks and small mobile operators (such as coffee carts) can trade at all suitable transport hubs.

Whiletakingsite-specificsafetyconsiderationsintoaccount,there will be a presumption in favour of allowing mobile food vendors to trade on Government-owned transport hubs. This will support mobile traders at stations to support increased amenity and public transport use.

This proposal will also allow mobile food vendors to meet demandwherefixedpremisesarenotavailable,suchasatKlemzig and Paradise interchanges, as suggested by respondents:

“I love the idea of food trucks being able to service train and o-bahn stations.”

“Definitelycoffeeandbreakfasttrucksattheo-bahn!”

ImplementationAs different sites have different safety and security requirements, food truck vendors wishing to trade at transport hubs will need to apply to the Department of Planning, Transport and Infrastructure, identifying each site where they would like to trade.Providedtherearenospecificaccessorsafetyimplications,such as safe movement of passengers and placement of power, there will be a presumption in favour of supporting the application.

To make this process easier, the Government will issue new guidelines clearly stating the requirement for mobile food vendors to operate at transport hubs. These will be similar to existingfilmingorphotographyguidelines.

These new guidelines will clearly set out any requirements that food trucks have to adhere to operate on transport hubs. This will make it practical for operators to understand and comply with all requirements. There will also be no cost for these applications.

“ As a city resident I’m a regular customer of both bricks and mortar restaurants and food trucks. Food trucks have increased our choice as consumers and most certainly added to the vibrancy of the city..“


3. A BETTER APPROACH TO FOOD SAFETY INSPECTIONS AND FOOD BUSINESS NOTIFICATIONS


What is the issue?Like all South Australian food and drink vendors, food trucks must meet all necessary food safety requirements under the Food Act 2001.

The RC&A stated in their submission:

“One area of red tape reduction that would deliver significantbenefittooperatorsisthestandardisationoffood safety/health inspections.”

Under the Act, local councils are responsible for receiving notifications(theone-offeventwhereabusinessadvisesofitsintention to serve food) from food businesses and conducting food safety inspections for all businesses in their area.

Some food truck operators report councils requiring food businessnotificationsforeachsiteandmultipleinspectionsfrom separate councils. This can be expensive and burdensome for both the business and the council. It also means that food trucksundergomorefrequentinspectionsthanfixedpremisesbusinesses. While consumers rightly expect that food trucks are safe places to buy food and drinks, the frequency of inspections should be based on risk, rather than on the movement or location of the trader.


Action 4: New guidance and introduction of an inspection passportWhat is the Government’s position?The Government’s strong position in relation to this issue is that food safety inspections should be undertaken on a clear food safety risk basis.

Assuming it is meeting requirements under the Food Act 2001, a food truck should not be subject to an inspection regime that isanylessormorestrictthanafixedpremisessellingthesametype of food. Food trucks should be free to move around the metropolitan area and quickly change their trading location to meet demand without facing unnecessary red tape.

Proposal and implementationThe Government proposes two new measures to ensure that localcouncilinspectionregimesreflecttheriskposedbyfoodtrucks. The location of a vehicle should not determine whether or not it is inspected, and inspections should be based on a Food BusinessRiskClassification.Thesemeasurestoencouragefoodtrucks to trade around the city are:

• Issuing clear new guidance material to councils specifically on food trucks: SA Health, in collaboration with local government, will prepare new guidance material to help local councils to regulate foodtrucksefficiently.

This recognises that mobile food vendors represent a relatively newtypeofbusiness,andmaynotreadilyfitintoexistingprocessesdesignedforfixedpremises.


This material could be modelled on material recently prepared by the NSW Food Authority offering guidance on inspections and other matters to assist councils in overseeing food trucks in their communities.2

• New inspection passport: SA Health, again in collaboration with local government, will roll out an ‘inspection passport.’ Food truck operators will be able to present the passport to food safety inspectors to receive a stamp following a successful inspection.

This passport system will enable food truck operators to show evidence of a recent successful food safety inspection. This should be recognised by another council. Operators will also be able to show a food safety inspection report as evidence if they wish. The passport system will be linked to the guidance material.

The Government recognises that there might be situations, such as during a festival, where the high number of customers being served may mean additional inspections are required.

SA Health is already working to ensure that, for 2016, all food safety inspections under the Food Act 2001 are done according toFoodBusinessRiskClassificationrequirements.Thiswillreinforce the need for councils to undertake inspections on a clearriskclassificationbasis.

As stated in the City of Onkaparinga’s response to the discussion paper:

“The paper suggests cross-jurisdictional management of relevant activities could be facilitated using, for example, a health passport that is appropriately supported by legislation. Any practical mechanism for enabling rapid, accurate determination of the food safety status of all types of mobile food businesses would be welcome.”

Depending on the success of the guidance material and inspection passport, the Government may consider undertaking notificationsandinspectionsforfoodtruckscentrally.Thiswouldrequirethatacentralnotificationandinspectionpointbe established within SA Health. This would be done to ensureinspectionstakeplaceonariskclassificationbasisandthe movement of food trucks across council boundaries is not inhibited. While not a strict proposal at this stage, it may be considered in the future depending on the impact of the proposed guidance material and inspection passport.

2 www.foodauthority.nsw.gov.au/_Documents/retail/mobile_food_vending_guidelines.pdf


4. OTHER MEASURES FOR FOOD TRUCKS


What is the issue?An investment in a food truck can be a costly one. Vendors say that while the cost of starting a food truck business is lower than starting a business at many rented premises, it can cost $50,000 or more. High start-up costs and associated risks may make it impossible for an entrepreneur to pursue their new food business idea in South Australia.

The Government is keen to support entrepreneurs considering starting a new food service business in South Australia. This recognises both that a small ‘leg up’ can sometimes offer a big advantage, and the public value of food trucks in terms of interest and activity in the city. We want to attract these new businesses to South Australia, and to remain a leader in Australia for innovative business and entrepreneurial activity.

The discussion paper suggested a one-off partial vehicle registration rebate for new food trucks. After considering the practicalities involved, this action will not be pursued at this stage.


Action 5: Make a tester truck availableWhat is the Government’s position? What is proposed?One response to the discussion paper highlighted that: “food trucks can be the perfect vehicle for individuals to take a risk on a small scale and learn important business rules and lessons.”

The Government strongly agrees with this statement. There may be many prospective entrepreneurs eager to establish a food truck,butwithoutthefinancialcapitalorexperienceneededtoembark on a new business venture.

We want to give these potential entrepreneurs the opportunity to test out their ideas in a lower risk environment. This will allow them to test whether they are able to make their idea work before making a substantial investment.

This truck will be regularly cycled through different entrepreneurs, allowing them to test new ideas in the market

ImplementationThe Government will sponsor a ‘tester truck’ – referred to as a trial truck in the discussion paper – for prospective businesses to use for a short period of time to test their food truck concept. Entrepreneurs will be able to test out menus, marketing and locations before investing in their own independent mobile operation. The Government is working on the best model for this initiative. It is likely to involve contracting a provider to establish and administer the operation of the truck.

Action 6: Promotion of food trucks to form part of promoting South AustraliaWhat is the Government’s position? What is proposed?Consultation with food truck operators revealed strong support for the Government to maximise awareness and visibility of South Australian food truck businesses what they offer South Australia and Adelaide.

In response, the Government proposes incorporating food trucks into Government’s effort to promote Adelaide and South Australia. In particular, this means promoting food trucks as a great food experience right in the heart of Adelaide.

ImplementationThe Government, via the South Australian Tourism Commission, will develop State marketing strategies and materials that incorporate food trucks. This will support the drive for more interstate and international visitors.

This effort will align strongly with the State’s economic priority to make Adelaide the heart of a vibrant State and to promote our premium food and wine to the world.

Social media is another important method to promote food trucks. There is still a need for a useful smart phone app to help people easily locate food trucks. The existing food trucks app, ‘Adelaide Street Eats’, is not well utilised.

Government is not well-placed to create a new app. However, the Government sees potential for industry to either build on the Adelaide City Council’s existing Street Eats app or develop a new app to let customers see where food trucks are each day. To facilitate this, the Government will host a Digital Challenge to help digital entrepreneurs design a user-friendly solution to connect customers and food trucks, wherever they might be trading.


Theme Action Responsibility Timing

Simpler regulation A consistent permit systemSA Government (DPTI) with support from local councils

6 months

More places to trade

New opportunities for food trucks to trade on private or public land

SA Government with support from private sector

6 to 12 months

Food trucks to operate at transport hubs

SA Government Less than 6 months

A better approach to food safety inspections and food business notifications

New guidance and implementation of inspection passports

SA Government (SA Health) with support from local councils

6 to 12 months

Other measures for food trucks

Make a new ‘tester truck’ available

Promotion of food trucks to form part of marketing South Australia

12 months

Promotion of food trucks to form part of marketing South Australia

SA Government (SATC) 12 to 18 months

Digital solutions

Run a challenge with digital entrepreneurs to design a user-friendly way to connect food trucks and their customers

SA Government (DPC) Less than 6 months

Implementation summary


Governmentof South Australia

Continue to have your say

We encourage South Australians to continue to have your say on this topic.

Please provide your comments on issues and proposalsidentifiedinthispaperbycommenting on the discussion board at:

www.yourSAy.sa.gov.au


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